Public authorities – Corruption allegations that staff from a number of local councils and other authorities accepted secret benefits from suppliers and that staff from two local councils facilitated payment of false invoices from suppliers (Operation Jarek)

Public authorities – Corruption allegations that staff from a number of local councils and other authorities accepted secret benefits from suppliers and that staff from two local councils facilitated payment of false invoices from suppliers (Operation Jarek)

The ICAC investigated allegations that staff from a number of local councils and other authorities engaged in corrupt conduct by accepting gift vouchers and other gifts from suppliers as an inducement to continue placing orders with their companies or as a reward for placing orders with the companies. The ICAC also investigated allegations that staff from two local councils engaged in corrupt conduct in relation to false invoices to those two councils.

In its report on the investigation, made public on 29 October 2012, the Commission finds that 22 employees or former employees of 14 local councils and another public authority in NSW engaged in corrupt conduct by accepting gift vouchers and other gifts from suppliers as an inducement to continue placing orders with their companies or as a reward for placing orders with the companies. Fifteen staff from four supplier companies were also found to have engaged in corrupt conduct through their involvement in offering these gifts.

The ICAC also finds that two former storepeople, Geoffrey Hadley of Bathurst Regional Council and Kerry Smith of Yass Valley Council, and three suppliers engaged in corrupt conduct in relation to false invoices issued to those two councils in return for cash kickbacks. Under this scheme, Mr Hadley and Mr Smith received combined corrupt payments in excess of $323,000.

The Commission has made 15 corruption recommendations to all councils in NSW, as it is evident that the conduct uncovered during this investigation is systemic and all councils should take action to mitigate these risks.

Investigation reports

Investigation into allegations that staff from a number of local councils and other public authorities accepted secret benefits from suppliers (Operation Jarek)(October 2012)

View all transcripts associated with this investigation. The Commission makes every effort to post the daily transcripts of its public inquiries on its website by 8:00 pm each day when possible. If the Commission sits later than 4:00 pm, the daily transcripts, particularly the afternoon session, may not be available until the next working day.